PM says Thailand must get out of “middle-income” trap in less than 12 years

BANGKOK: -- Thailand will have to speed up its development in order to step out of the “middle income trap” into the “high income” category in less than 12 years given the current capability, said Prime Minister Prayuth Chan-ocha during his weekly “Return Happiness” address to the nation Friday night.

Being trapped in the middle-income country category, he explained that Thailand would not be able to compete with countries which have low labour costs and, at the same time, could not compete with developed countries which have high technology.

The arrival of Asean Economic Community next year and the fact that Thailand is one of the three economic pillars of the grouping pose a real challenge for Thailand in the way that it has to increase its competitiveness to level with its neighbouring countries which are both Thailand’s partners and competitors, said the prime minister.

He called on his countrymen not to be too worried with the issue of individuals, saying that the National Council for Peace and Order will work closely with the government and will keep checking each other to ensure transparency, honesty and fairness.

He stressed the need to strengthen all systems to combat corruption especially the government sector and private sector must cooperate to prepare themselves for reform and to bring about reform among the politicians so they will practice good governance.

Although corruption problem was not listed among the issues to be reformed, the prime minister assured that the NCPO had attached great importance to the problem and made it the top priority for reform.

Source: http://englishnews.thaipbs.or.th/pm-says-thailand-must-get-middle-income-trap-less-12-years/?utm_source=rss&utm_medium=rss&utm_campaign=pm-says-thailand-must-get-middle-income-trap-less-12-years

-- Thai PBS 2014-08-30

First decent PM we've had in a long long long time,

This guy seems to really have a good head on his shoulders which is more than can be said for 95% of this countries politicians. I know it will take time to build a body of work on which to judge him properly but for once I see some hope for Thailand's socio/political/economic future. Let's hope he is the real deal. Keeping my fingers crossed!

The first intelligent leader I can remember this country having

Where did the magical figure of 12 years come from? Anybody?

As soon as he said. Corruption is not listed among the issues to be reformed!

This guy seems to really have a good head on his shoulders which is more than can be said for 95% of this countries politicians. I know it will take time to build a body of work on which to judge him properly but for once I see some hope for Thailand's socio/political/economic future. Let's hope he is the real deal. Keeping my fingers crossed!

While I too am keeping my fingers crossed, I cannot but wonder what is going to happen in 18 months or so, when real elections are held. I fear it will be back to business as usual at that point. Does anyone really think that Thaksin is finished yet? The PTP (or whatever they get reincarnated as) will field the same tired old faces. Probably the Democrats too.

How many Thais are middle income? where I am there are still many,many Thais working in rice fields and on building sites for 200 baht a day.

This guy seems to really have a good head on his shoulders which is more than can be said for 95% of this countries politicians. I know it will take time to build a body of work on which to judge him properly but for once I see some hope for Thailand's socio/political/economic future. Let's hope he is the real deal. Keeping my fingers crossed!

While I too am keeping my fingers crossed, I cannot but wonder what is going to happen in 18 months or so, when real elections are held. I fear it will be back to business as usual at that point. Does anyone really think that Thaksin is finished yet? The PTP (or whatever they get reincarnated as) will field the same tired old faces. Probably the Democrats too.

How about Abhisit and the Democrats pull out of the elections, and the people will be allowed to tick the box "Thaksin" or "junta" ? The other little parties will be allowed to run.

Once that happens, and the junta wins (they don't need more than 50 per cent of the votes cast, they just need to get more votes than Thaksin), then, the junta is no longer a junta. It automatically becomes a democratically elected government.

And then, Thailand can get back in with Europe and America. And Thailand can then benefit from America and China competing against each other. (America will hand out benefits to Thailand, America wants to stop Thailand being aligned with China).

Where did the magical figure of 12 years come from? Anybody?

Lucky number?, pulled from the air?

regards Worgeordie

A better target would to pull the poorest up into the middle class,

Moving more people into the higher class is not a good thing if

you look at the attitude of some of the higher up in society,today.

then no one would be accountable for anything,do you know who

i am,as an example.

regards Worgeordie

A Good Man who could become a Great Man if he follows through on his talk by making the walk. It will never be an easy job for him as sadly for him and the country in general, a lot of what he talks of will fall on very deaf ears because there are many elements in Thai society that do not want radical change, or 'reform' to use the current buzz word, of any sort, especially of the 'checks and balances' type. So much corrupt criminality is ignored or hidden by 'Civil Servants' at every level that it will take several decades to eradicate it. I just hope that the General has enough clean and willing hands to help him achieve his goals.

A better target would to pull the poorest up into the middle class,

Moving more people into the higher class is not a good thing if

you look at the attitude of some of the higher up in society,today.

then no one would be accountable for anything,do you know who

i am,as an example.

regards Worgeordie

He is talking about moving the whole country as a whole from a middle tier to higher tier country. That would automatically mean moving the bulk of citizens into a middle class.

Again he is setting reasoned time frames to his musings. The longer he can stay around at the top the better Thailand is going to be for his leadership.

"...talk in everlasting words and dedicate them all to me..." Come back in 12 months.

When you compare Prayuth's views on economy to the philosophy of the coup makers of 2006, there is a HUGE difference. The references to the sufficiency economy that was a pillar of the post Thaksin new deal have completely disappeared. We are actually moving in the complete opposite direction. Who is behind Prayuth, I don't know but it's definitively not the same people who were behind the 2006 coup.

Post criticising current Prime Minister removed, as well as some responses.

Just remember to tread carefully.

First he IS NOT a leader! Leaders do not take over countries, impose martial law, and throw out constitutions all in favor of doing whatever HE chooses. Individualism is imperative! Too much country first and this xenophobia the Thais have of other successful countries is the number one reason Thailand cant get its government into the 21st century.

Sent from my iPad using Thaivisa Connect Thailand

Would you rather have a benevolent dictator or an elected scumbag?

Well, if the 'elected' turned out to be a scumbag, at least I would have the freedom to call him/she one. Currently the populace are being forced to eat that which they are fed, with zero transparency. Dangerous path.

p1 Logical fallacy: false dilemma

p2 Makes assumptions about the reader's knowledge of the minutia of AEC goals

p3 We haven't earned it in the slightest, but we insist that you trust your government.

p4 "Reform" aka, every political slogan in any election in any country at any time, ever

p5 Chok dee

In my opinion there are 2 ways to escape from the middle income trap:

1. lower the income from labor making Thailand competitive again as a production country.

2. make sure your technological ahead of the rest (think about China, Malaysia, Singapore), so you can ask from a higher income.

Something tells more that number 1 is more likely to happen than number 2.

Thailand needs to invest in education, it needs to move it's focus of agriculture as the main income of the country.

The key is to educate the poor, not to keep them stupid or "happy" with what they have, which has always been the number one priority of the old powers.

What is "returning happiness" to the people?

Liberate them from thinking within the frames set by the old powers?

Or try to keep them happy and give them a feeling of sufficiency why in reality they are poor as hell?

Where are the checks and balances? The NCPO can check the government, but wait a minute, the head of the government, PM, is also the head of the NCPO! So how can this dictatorial regime check on itself! Whatever the PM says goes. Or am I missing the point?

Where did the magical figure of 12 years come from? Anybody?

Lucky number?, pulled from the air?

regards Worgeordie

12 year cycle. Popular in Asia.

Sent from my iPad using Thaivisa Connect Thailand

Where are the checks and balances? The NCPO can check the government, but wait a minute, the head of the government, PM, is also the head of the NCPO! So how can this dictatorial regime check on itself! Whatever the PM says goes. Or am I missing the point?

Whatever the PM says goes is a very good description of how politics normally works in Thailand.

Sent from my iPad using Thaivisa Connect Thailand

Where did the magical figure of 12 years come from? Anybody?

He was going to propose a '5 year plan', but someone told him it has been done.

Where did the magical figure of 12 years come from? Anybody?

Do a search on middle income trap Thailand. There has been various analyses, when Yingluck was in power, that forecast it would take between 10 - 20 years to complete the implementation of policies, together with appropriate investments for infrastructure and so on to achieve the goals in the OP. I assume NCOP have used modelling techniques that indicate 12 years is a reasonable timeline, so long as not too much crap happens in the meantime.

A total guess, but just maybe the 'returning happiness' theme incorporates some of UN Millennium Development Goals committed to by governments around the world.

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First decent PM we've had in a long long long time,

The first intelligent leader I can remember this country having

Do you think this is something original? Every middle income country, including China, is trying to avoid the middle income trap.

Am I missing something? I understand the problem and understand the goals but didn't really see a realistic PLAN to make the fundamental changes needed to upgrade the general level of Thai human capital to bring about the goals. In other words -- EDUCATION.

I suggest taking a lawn mower to the impenetrable thicket of laws and regulations--they reduce efficiency and provide cover for all the corrupt government officials. Does anyone know if this is one of the proposed reforms?

This guy seems to really have a good head on his shoulders which is more than can be said for 95% of this countries politicians. I know it will take time to build a body of work on which to judge him properly but for once I see some hope for Thailand's socio/political/economic future. Let's hope he is the real deal. Keeping my fingers crossed!

While I too am keeping my fingers crossed, I cannot but wonder what is going to happen in 18 months or so, when real elections are held. I fear it will be back to business as usual at that point. Does anyone really think that Thaksin is finished yet? The PTP (or whatever they get reincarnated as) will field the same tired old faces. Probably the Democrats too.

This bloke speaks more home truths than any politician in Thailand for the last 30 years.

Let's hope he can win an election.

"Mission Impossible". Yes it's the name of a movie but also the name of the task of lifting all low income Thai's into the middle class.

A similar sentiment was felt by some people in Australia in the 50's regarding the abo's. Give em a better life was the cry. Let them be equal to the white folk. All very noble.

The reality is today they are the biggest group of dole bludgers in the country, they whinge and whine about so many things. They only get government created jobs or if working in the private sector jobs from people who get a big chunk of cash from the government to emply abo's.

With the abo's we could call it 'Broken Dream's'.......but if I was old enough at the time to know what was going on I would have called it "Mission Impossible"!

Maybe in 12 years time I will still be here to see the result....and maybe....eat my words!